Japan and India emerged as key M&A destinations in Asia-Pacific in August amid tepid dealmaking in the region.
The number of announced deals fell to 726 in August, the lowest monthly total since January, when 704 deals were announced. The aggregate transaction value declined 23% year over year to $31.05 billion, according to S&P Global Market Intelligence data.
M&A activity in Asia-Pacific slowed in recent months amid trade uncertainties. US President Donald Trump announced reciprocal tariffs on trade partners ranging from 10%-50%. Countries have increasingly adopted protectionist stances in recent years, placing restrictions on cross-border deals.
Cross-border M&A has seen a sustained pullback due to increased scrutiny of inbound deals and deteriorating relations between major economies such as the US and China, said Barry Perkins, an analyst in EY’s Business and CXO Insights Group.
“If we go back to 2007, cross-border made up 40% of global M&A. That’s gradually trimmed down over the years, and it was averaging about 30% of M&A up to the point of the pandemic,” Perkins said. “Now in 2025, we actually see that just a quarter of deals by value are cross-border.”
Japan, India shine
Japan and India continued to show strong momentum in domestic M&A, accounting for about 40% of the deals in Asia-Pacific. Their share in overall deals was about 35% in August 2024, according to Market Intelligence data. Japan recorded 168 deals, while India accounted for 118 deals in August, both reflecting a decline from August 2024. However, both markets were among the top contributors to the 726 deals announced in the region.
Japan’s M&A deal volume reached a 20-year peak in the first half of 2025, according to financial intelligence firm Mergermarket.
In contrast, the number of deals in China and Australia fell significantly short of 2024 levels. “China pulling out of cross-border [transactions], both through choice and through restrictions placed on Chinese acquirers by other countries, has had a big impact,” Perkins said.
Domestic transactions
Asia-Pacific’s M&A landscape in August was characterized by low-value domestic transactions. The aggregate deal value fell 33.8% year over year, while the number of deals declined 20.2%, suggesting dealmakers preferred smaller acquisitions.
Six of the seven deals worth more than $1 billion involved buyers and sellers based in the same country. In the industrials sector, South Korea-based HANSHIN Engineering & Construction Co. Ltd.’s acquisition of JB YSK 3rd Corporate Restructuring Co. Ltd. was the largest deal of the month, valued at about $3.86 billion. JB YSK specializes in distressed asset management and corporate restructuring.
HD Hyundai Mipo Co. Ltd., also based in South Korea, merged with HD Hyundai Heavy Industries Co. Ltd., the world’s largest shipbuilding firm, in a $2.87 billion deal. Both companies are part of HD Hyundai Co. Ltd., which will hold a 66.29% stake in the merged entity through HD Korea Shipbuilding & Offshore Engineering Co. Ltd.
Meanwhile, China’s Bank of Gansu Co. Ltd. sold $2.13 billion of its underperforming loans to Gansu Assets Management Co. Ltd. to ease its bad-debt burden.